EXPLICACIONES DE LAS VARIAS FUENTES Y RESALTADOS UTILIZADOS EN LA PLANTILLA
EXPLANATIONS OF THE VARIOUS FONTS AND HIGHLIGHTS USED IN THE TEMPLATE

“Las letras negras indican un texto estándar.
"The black letters indicate standard text.

 “[Letras rojas, sin negrita]” indica un texto sugerido y opcional. Modifique o añada lo que sea necesario
 "[Red letters, no bold]" indicates suggested and optional text. Modify or add as needed.

 “[Letras rojas, negrita]” es informativo o explicativo para el autor. Se resalta en amarillo para El resaltado en gris indica cambios en la plantilla con respecto a versiones anteriores (recientes).
"[Red letters, bold]" is informative or explanatory for the author. Highlighted in yellow for Highlighting in grayindicates changes to the template from previous (recent) versions.

XXX COMPAÑÍA
XXXCOMPANY

Estimada
Dear

Reservas e ingresos futuros
Future bookings and revenue

[[DESCRIBA ADECUADAMENTE LOS VOLÚMENES E INGRESOS INCLUIDOS]
[[ADEQUATELY DESCRIBE VOLUMES AND REVENUES INCLUDED]

Recursos contingentes [e ingresos]
Contingent resources [and income]

[Atribuible a ciertas
[Attributable to certain

Intereses de arrendamiento [contractuales] [y de regalías]
[Contractual] [and royalties] lease interest

[Alternativamente:
[Alternatively:

[Derivado a través de ciertos contratos de producción compartida]
[Derived through certain productionsharing contracts]

[O alternativamente:
[Or alternatively:

Atribuible a ciertas
Attributable to certain

Intereses de arrendamiento [y regalías]and
Lease interest [and royalties]and

[Derivado a través de ciertos contratos de producción compartida]
[Derived through certain production sharing contracts]

Parámetros no escalados
Unscaled parameters

As of

XXXX XX, 20XX

TBPELS Firm Registration No. F-1580

COMPRENDER LA INFORMACIÓN CORRECTA SOBRE RECURSOS CONTINGENTES
UNDERSTANDING THE CORRECT INFORMATION ABOUT CONTINGENT RESOURCES

La siguiente tabla NO debe incluirse en el informe de reservas. Se incluye únicamente para describir los diferentes tipos o "grupos" de recursos contingentes (es decir, Grupo 1, 2 o 3) y, por lo tanto, para ayudar al redactor del informe a seleccionar la redacción correcta de la información divulgada.
The following table should NOT be included in the Reservations report. It is included only to describe the different types or "groups" of contingent resources (i.e., Group 1, 2 or 3) and therefore to assist the report writer in selecting the correct wording of the information disclosed.

 Ninguna referencia a los Grupos 1, 2 o 3 en esta plantilla debe incluirse en el informe. Esta nomenclatura es exclusiva de Ryder Scott y solo sirve para aclarar la redacción correcta de la información divulgada en su informe.
 No reference to Groups 1, 2 or 3 in this template should be included in the report. This nomenclature is unique to Ryder Scott and only serves to clarify the correct wording of the information disclosed in its report.

 Esta plantilla incluye “redacción sugerida” que podría ser pertinente para un informe de recursos contingentes.
 This templateincludes "suggested wording" that might be relevant to a contingent resources report.

Por lo tanto, es fundamental que el redactor del informe comprenda qué grupo o grupos de recursos contingentes se presentan en su informe y, a continuación, utilice o modifique la redacción adecuada para revelar de forma más adecuada los recursos incluidos.
It is therefore essential that the report writer understands which contingent resource group(s) are presented in his or her report and then uses or modifies the appropriate wording to better disclose the resources included.

Es importante comprender que es casi imposible incluir una redacción opcional en una plantilla que aborde todas las combinaciones de divulgación de recursos contingentes. Utilice o modifique la redacción adecuada..
It is important to understand that it is nearly impossible to include optional wording in a template that addresses all contingent resource disclosure combinations. Use or modify the appropriate wording.

Cada informe de recursos puede presentar los volúmenes y/o datos financieros de manera diferente dependiendo de la solicitud de su cliente.
Each resource report may present financial volumes and/or data differently depending on your client's request.

Early on in your evaluation process, ask your client how they want the resources presented; then be prepared to discuss with them how it will be disclosed.

Es posible que solo haya evaluado un grupo de recursos. De ser así, no insinúe que analizó otros grupos. Indíquelo adecuadamente. No incluya información adicional sobre otros grupos que no haya evaluado..
You may have only evaluated one resource group. If so, don't imply that you looked at other groups. Indicate it appropriately. Do not include additional information about other groups that you have not evaluated..

NOTA: La información contenida en la plantilla para los recursos contingentes en la página 1 debe ser coherente con la información contenida en la página 14. Comprenda la redacción y léala con atención.
NOTA: The information contained in the template for contingent resources on page 1 should be consistent with the information contained on page 14. Understand the wording and read it carefully.

Obviously, it is imperative that you must first understand the meaning of the table below and all the SPE-PRMS descriptive terms. If you do not, discuss this with your Group Leader. If additional clarification is required, contact a member of the Letter Review Committee: Fred Ziehe, Dean Rietz, Guale Ramirez, Larry Connor, Herman Acuna.

  Date

[Name]

XXX Company

Address

City, State

Ladies and Gentlemen: [Dear Mr. [Ms.] XXXXXXX:]  [Gentlemen:]

At your request, Ryder Scott Company, L.P. (Ryder Scott) has prepared an estimate of the proved (P1), probable (P2) and possible (P3) reserves
Book [1P, 2P and 3P (Cumulative) reserves or P90, P50 and P10 reserves], future production and income and an estimate of the C1 (Incremental), C2 (Incremental) and C3 (Incremental) [“Economically Viable”
"Economically Viable"] [and/or “Economically Not Viable”] contingent resources [1C, 2C and 3C (Cumulative) contingent resources or P90, P50 and P10 contingent resources], [Note: The uncertainty basis may be represented by other combinations of deterministic or probabilistic estimates, if so, then denote what was evaluated. Also, describe appropriately if income data was or was not prepared for the contingent resources, shown as follows:] [future production and income] attributable to certain leasehold [and royalty] interests [Alternatively Add or Substitute: [and] derived through certain production sharing contracts] of XXX Company (XXX) as of XXXX XX, 20XX. The subject properties are located in the states of XXXX and XXXX and in the federal waters offshore XXXX. [Note: For reports that include or that exclusively comprise properties outside the U.S., the letter should denote the country and geographic province or area where the properties are located.] The reserves and contingent resources volumes included herein were estimated based on the definitions and disclosure guidelines contained in the Society of Petroleum Engineers (SPE), World Petroleum Council (WPC), American Association of Petroleum Geologists (AAPG), Society of Petroleum Evaluation Engineers (SPEE), Society of Exploration Geophysicists (SEG), Society of Petrophysicists and Well Log Analysts (SPWLA), and European Association of Geoscientists & Engineers (EAGE) 2018 Petroleum Resources Management System (SPE-PRMS), which were revised in June 2018. The reserves [and contingent resources] volumes were estimated based on unescalated price and cost parameters (SPE-PRMS constant case), provided by XXX. [These contingent resources are implied to be Group 1 contingent resources, but should be more fully described below.] The income data for the reserves [and contingent resources] volumes were estimated using future price and cost parameters as noted herein and held constant throughout the life of the properties (SPE-PRMS constant case). [The contingent resources presented herein were not projected or economically evaluated.] The results of our third-party study, completed on XXXX XX, 20XX, are presented herein.

[Furthermore, the contingent resources reported herein [may] [do not] include contingent resources that are economic (i.e., expected to yield positive undiscounted cash flows), [and] [but] which [are] [are not] expected to meet commercial criteria (i.e., they [do not] exceed XXX’s investment hurdle rate. [The preceding sentence may apply to Group 2 or Group 1 contingent resources depending on the wording you choose.] Also, they [may] [do not] include Economically Not Viable Contingent Resources.] [The preceding sentence applies to Group 3 contingent resources.] None of the contingent resources included herein reflect any potential risk associated with their chance of development. [NOTE: Be sure to include any appropriate wording for this report that describes more fully what contingent resources are included or excluded from this report (e.g., contingent resources that go beyond the contract life, etc.]

[If the evaluation includes all of the properties and net reserves and contingent resources, then use the following statement: The properties evaluated by Ryder Scott represent 100 percent of the total net proved, probable and possible [1P, 2P and 3P or P90, P50 and P10] liquid hydrocarbon reserves and 100 percent of the total net proved, probable and possible [1P, 2P and 3P or P90, P50 and P10] gas reserves of XXX as of XXXX XX, 20XX. [Note-Rather than reference the percentage on a total company basis, the evaluator may wish to reference the percentage in the context of the state, province or offshore or other geographic area. If this option is selected, then replace the sentence above to state: The properties evaluated by Ryder Scott represent 100 percent of the total net proved, probable and possible [1P, 2P and 3P or P90, P50 and P10] liquid hydrocarbon reserves and 100 percent of the total net proved, probable and possible [1P, 2P and 3P or P90, P50 and P10] gas reserves of XXX as of XXXX XX, 20XX [in the ABC].

Additionally, the properties evaluated by Ryder Scott represent 100 percent of the total net C1, C2 and C3 [1C, 2C and 3C or P90, P50 and P10] liquid hydrocarbon contingent resources volumes and 100 percent of the total net C1, C2 and C3 [1C, 2C and 3C or P90, P50 and P10] gas contingent resources volumes of XXX as of XXXX XX, 20XX [or as noted above [in the ABC]] in the subject properties of XXX as of XXXX XX, 20XX.

[Note- The uncertainty basis noted within your letter for the previous sections may be represented by other combinations of deterministic or probabilistic estimates. If so, then denote what was evaluated referencing the volumes of the company or within the geographic area evaluated by Ryder Scott.]

[If the evaluation includes only a portion of the properties and net reserves and contingent resources of the company or within a geographic area, then use the following statement:] The properties evaluated by Ryder Scott account for a portion of XXX’s total net proved, probable and possible [1P, 2P and 3P or P90, P50 and P10] reserves and C1, C2 and C3 [1C, 2C and 3C or P90, P50 and P10] contingent resources volumes as of XXXX XX, 20XX [in the ABC]. [Note-The following additional detail is a requirement for letters filed with the SEC. We have elected to provide similar information in the SPE-PRMS letters; however, it may not be possible for the evaluator to obtain the specific data necessary to complete this section. If that is the case, then exclude this additional detail.] Based on information provided by XXX, the third-party estimate conducted by Ryder Scott addresses approximately XX percent of the total proved [1P or P90], XX percent of the total probable [2P or P50] and XX percent of the total possible [3P or P10] net reserves of XXX on a barrel of oil equivalent, BOE [gas equivalent, MMcfe] basis as of XXXX XX, 20XX.

Additionally, based on information provided by XXX, the third-party estimate conducted by Ryder Scott addresses approximately XX percent of the total C1 [1C or P90], XX percent of the total C2 [2C or P50] and XX percent of the total C3 [3C or P10] net contingent resources of XXX on a barrel of oil equivalent, BOE [gas equivalent, MMcfe] basis as of XXXX XX, 20XX.

[Note- The uncertainty basis noted within your letter for the previous sections may be represented by other combinations of deterministic or probabilistic estimates. If so, then denote what was evaluated referencing the volumes of the company or within the geographic area evaluated by Ryder Scott.]

The estimated reserves [If you are presenting income associated with the contingent resources, include the following: ] [and contingent resources] presented in this report, as of XXXX XX, 20XX, are related to hydrocarbon prices based on unescalated price parameters. As a result of both economic and political forces, there is substantial uncertainty regarding the forecasting of future hydrocarbon prices. Consequently, actual future prices may vary considerably from the prices assumed in this report. The reserves volumes and the income [and the contingent resources and income] attributable thereto have a direct relationship to the hydrocarbon prices actually received; therefore, volumes of reserves [and contingent resources] actually recovered and amounts of income actually received may differ significantly from the estimated quantities presented in this report. [If the contingent resources were quantified but were not projected or economically evaluated, you should include the following sentence: [The contingent resources presented below have not been projected or economically evaluated.] The results of this study are summarized below.

UNESCALATED PARAMETERS

Estimated Net Reserves, Contingent Resources Volumes and Income Data

[Certain Leasehold [and Royalty] Interests of]

[Alternatively: Derived Through Certain Production Sharing Contracts of]

[Alternatively: Certain Leasehold [and Royalty] Interests and

Derived Through Certain Production Sharing Contracts of]

XXX Company

Values may not sum to total due to rounding.

[INCLUDE CONTINGENT RESOURCES VOLUMES AND INCOME IF APPLICABLE.]

Liquid hydrocarbons are expressed in standard 42 U.S. gallon barrels [and shown herein as thousands of barrels (MBarrels)]. All gas volumes are expressed in millions of cubic feet (MMcf) at the official temperature and pressure bases of the areas in which the gas volumes are located. All gas reserves [and contingent resources] volumes are reported on an “as sold” basis. [The contingent resources gas volumes are reported before consideration of shrinkage and fuel.] [If additionally disclosing reserves and contingent resources on an equivalent units basis, you must disclose the basis for converting the hydrocarbons to the equivalent units. Please note that disclosures on an equivalent units basis represent supplementary information and should not replace the disclosure of the net liquid hydrocarbons and the net gas reserves and contingent resources volumes. For example, disclosing volumes on an equivalent barrel, BOE, basis, you must disclose the basis for converting hydrocarbons in the gaseous state to equivalent liquid barrels, i.e.: The net reserves and net [or gross] contingent resources volumes are also shown herein on an equivalent unit basis wherein natural gas is converted to oil equivalent using a factor of 6,000 cubic feet [use other conversion factor if applicable] of natural gas per one barrel of oil equivalent. MBOE means thousand barrels of oil equivalent.] [If income data are denoted in $M, please include a statement in the letter to define $M. For example: In this report, the revenues, deductions, and income data are expressed as thousands of U.S. dollars ($M).]

[ECONOMIC SOFTWARE DISCLAIMER OPTION: The estimates of the reserves [and contingent resources], future production, and income attributable to properties in this report were prepared using the economic software package [ARIES^TM Petroleum Economics and Reserves Software, a copyrighted program of Halliburton; PHDWin Petroleum Economic Evaluation Software, a copyrighted program of TRC Consultants L.C.; Merak Peep Petroleum Economic Evaluation and Decline Analysis Software, a copyrighted program of Schlumberger Limited; OGRE Oil and Gas Reserves Evaluation Software, a copyrighted program of OGRE Systems, Inc.]. The program was used at the request of XXX. Ryder Scott has found this program to be generally acceptable, but notes that certain summaries and calculations may vary due to rounding and may not exactly match the sum of the properties being summarized. Furthermore, one-line economic summaries may vary slightly from the more detailed cash flow projections of the same properties, also due to rounding. The rounding differences are not material.]

The future gross revenue is after the deduction of production taxes. The deductions incorporate the normal direct costs of operating the wells, ad valorem taxes, recompletion costs, development costs, and certain abandonment costs net of salvage. [Provide appropriate description of other costs, if included as deductions. Please denote any other taxes in the description above relevant to this report.] The future net income is before the deduction of [if the report contains international properties in addition to properties in the U.S. then insert: U.S. state and federal or foreign income taxes] state and federal income taxes and general administrative overhead, and has not been adjusted for outstanding loans that may exist nor does it include any adjustment for cash on hand or undistributed income. [If applicable state: This report includes other income generated by the sale of an associated non-hydrocarbon by-product (specifically state what by-product this refers to, e.g. helium, sulfur, etc) resulting from the production of certain oil and gas reserves included herein. Alternatively state: The operating costs associated with the production of certain oil and gas reserves included herein incorporate an adjustment for the revenue generated by the sale of an associated non-hydrocarbon by-product (specifically state what by-product this refers to, e.g. helium, sulfur, etc).]

Liquid hydrocarbon reserves account for approximately XX percent of the total future gross revenue from proved [1P or P90] reserves and gas reserves account for the remaining XX percent of total future gross revenue from the proved [1P or P90] reserves reported herein. Liquid hydrocarbon reserves account for approximately XX percent of the total future gross revenue from probable [2P or P50] reserves and gas reserves account for the remaining XX percent of total future gross revenue from the probable [2P or P50] reserves reported herein. Liquid hydrocarbon reserves account for approximately XX percent of the total future gross revenue from possible [3P or P10] reserves and gas reserves account for the remaining XX percent of total future gross revenue from the possible [3P or P10] reserves reported herein.

 Liquid hydrocarbon contingent resources account for approximately XX percent of the total future gross revenue from C1 [1C or P90] contingent resources and gas contingent resources account for the remaining XX percent of total future gross revenue from the C1 [1C or P90] contingent resources reported herein. Liquid hydrocarbon contingent resources account for approximately XX percent of the total future gross revenue from C2 [2C or P50] contingent resources and gas contingent resources account for the remaining XX percent of total future gross revenue from the C2 [2C or P50] contingent resources reported herein. Liquid hydrocarbon contingent resources account for approximately XX percent of the total future gross revenue from C3 [3C or P10] contingent resources and gas contingent resources account for the remaining XX percent of total future gross revenue from the C3 [3C or P10] contingent resources reported herein.

 The discounted future net income shown above was calculated using a discount rate of 10 percent per annum compounded monthly. Future net income was discounted at four other discount rates which were also compounded monthly. These results are shown in summary form as follows.

The results shown above are presented for your information and should not be construed as our estimate of fair market value.

Reserves and Resources Included in This Report

The proved, probable and possible [1P, 2P and 3P or P90, P50 and P10] reserves and C1, C2 and C3 [1C, 2C and 3C or P90, P50 and P10] contingent resources included herein conform to the definitions of reserves and contingent resources sponsored and approved by the SPE, WPC, AAPG, SPEE, SEG, SPWLA and EAGE as set forth in the 2018 SPE-PRMS and where applicable, based on unescalated price and cost parameters (SPE-PRMS constant case). Refer to the full SPE-PRMS, which can be located at https://www.spe.org/en/industry/reserves/ for the complete definitions and guidelines.

The various reserves and contingent resources development and production status categories, as described in this report, are also fully defined in the SPE-PRMS located in the website mentioned above. The developed proved, probable and possible [1P, 2P and 3P or P90, P50 and P10] non-producing reserves included herein consist of the XXXX and XXXX status categories. The developed C1, C2 and C3 [1C, 2C and 3C or P90, P50 and P10] non-producing contingent resources included herein consist of the XXXX and XXXX status categories. [Amend statement as necessary to address the reserves and contingent resources categories represented in each producing status category.]

No attempt was made to quantify or otherwise account for any accumulated gas production imbalances that may exist. The gas volumes presented herein do not include volumes of gas consumed in operations as reserves [or contingent resources]. [The contingent resources gas volumes are reported before consideration of shrinkage and fuel.] [Specifically note any exceptions to this general statement.]

Reserves and Resources Classification

Recoverable petroleum resources may be classified according to the SPE-PRMS into one of three principal resources classifications: prospective resources, contingent resources, or reserves. Only two of these three resources classifications are addressed in this report (i.e., contingent resources and reserves). The distinction between prospective and contingent resources depends on whether or not there exists one or more wells and other data indicating the potential for moveable hydrocarbons (e.g. the discovery status). Discovered petroleum resources may be classified as either contingent resources or as reserves depending on the chance that if a project is implemented it will reach commercial producing status (e.g. chance of commerciality - P_c). The distinction between various “classifications” of resources and reserves relates to their discovery status and increasing chance of commerciality. Commerciality is not solely determined based on the economic status of a project, which refers to the situation where the income from an operation exceeds the expenses involved in, or attributable to, that operation. Conditions addressed in the determination of commerciality also include technological, economic, legal, environmental, social, and governmental factors. While economic factors are generally related to costs and product prices, the underlying influences include, but are not limited to, market conditions, transportation and processing infrastructure, fiscal terms and taxes. At XXX’s request, this report addresses only the reserves and contingent resources attributable to the properties evaluated herein and not the prospective resources (if any).

Certain estimated recoverable volumes have been classified as contingent resources in this report due to one or more contingencies. These contingencies are related to [provide a brief description of the reasons the volumes included in this report have been classified as contingent resources].

Reserves and Resources Uncertainty

All reserves and resources estimates involve an assessment of the uncertainty relating the likelihood that the actual remaining quantities recovered will be greater or less than the estimated quantities determined as of the date the estimate is made. The uncertainty depends primarily on the amount of reliable geologic and engineering data available at the time of the estimate and the interpretation of these data. Estimates will generally be revised only as additional geologic or engineering data becomes available or as economic conditions change. Discussions of reserves and contingent resources are presented below with general descriptions of the risks and uncertainties related to each of these resources classifications.

Reserves

Reserves are “those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions.” The relative degree of uncertainty may be conveyed by placing reserves into one of two principal categories, either proved or unproved.

 Proved oil and gas reserves are “those quantities of petroleum that, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under defined economic conditions, operating methods, and government regulations.”

 Unproved reserves are less certain to be recovered than proved reserves and may be further sub-categorized as probable and possible reserves to denote progressively increasing uncertainty in their recoverability. Probable reserves are “those additional reserves that analysis of geoscience and engineering data indicates are less likely to be recovered than proved reserves but more certain to be recovered than possible reserves.” For probable reserves, it is “equally likely that actual remaining quantities recovered will be greater than or less than the sum of the estimated proved plus probable reserves” (cumulative 2P volumes). Possible reserves are “those additional reserves that analysis of geoscience and engineering data indicates are less likely to be recoverable than probable reserves.” For possible reserves, the “total quantities ultimately recovered from the project have a low probability to exceed the sum of the proved plus probable plus possible reserves” (cumulative 3P volumes).

 [The reserves included herein were estimated using deterministic methods and are presented as incremental quantities. Under the deterministic incremental approach, discrete quantities of reserves are estimated and assigned separately as proved, probable or possible based on their individual level of uncertainty.] [NOTE: Include the preceding two sentences only if they apply; Otherwise use one of the following Alternative wording options.]

[Alternatively: The reserves included herein were estimated using deterministic methods and are presented as cumulative quantities. For reserves estimated using the deterministic cumulative approach, quantities of reserves are estimated and assigned as 1P, 2P or 3P based on the level of uncertainty for the cumulative volume. Under the deterministic cumulative approach, 1P denotes the low estimate, 2P denotes the best estimate and 3P denotes the high estimate.]

[Alternatively: The reserves included herein were estimated using cumulative probabilistic methods which assess the uncertainty in the estimated quantities of reserves based on the probability that the quantities actually recovered will equal or exceed the estimate. Using probabilistic methods, there should be at least a 90% probability (P90) that the actual quantities recovered will equal or exceed the cumulative 1P or low estimate, there should be at least a 50% probability (P50) that the actual quantities recovered will equal or exceed the proved plus probable incremental reserves or the cumulative 2P or best estimate and there should be at least a 10% probability (P10) that the actual quantities recovered will equal or exceed the estimate of the proved plus probable plus possible incremental reserves or the cumulative 3P or high estimates.] [Note if both deterministic and probabilistic methods were used individually or in combination to estimate the reserve quantities included herein.]

 [The reserves volumes and income quantities attributable to the different reserves categories that are included herein have not been adjusted to reflect these varying degrees of uncertainty associated with them and thus are not comparable. Petroleum reserves under different categories such as proved, probable and possible should not be aggregated with each other without due consideration of the appreciable differences in the criteria associated with their categorization.] [NOTE: Include the preceding two sentences only if “incremental quantities” are presented. Also, include the following 4 sentences below.

If “cumulative quantities” are presented, exclude the preceding two sentences, but include the following 4 sentences below.]

[NOTE: IF ONLY PROVED RESERVES ARE INCLUDED AND NO INCREMENTAL PROBABLE OR POSSIBLE RESERVES ARE REFERENCED IN THE REPORT, REMOVE THE WORD, “MOREOVER”.] [Moreover,] estimates of reserves may increase or decrease as a result of future operations, effects of regulation by governmental agencies or geopolitical risks. As a result, the estimates of oil and gas reserves have an intrinsic uncertainty. The reserves included in this report are therefore estimates only and should not be construed as being exact quantities. They may or may not be actually recovered, and if recovered, the revenues therefrom and the actual costs related thereto could be more or less than the estimated amounts.

 Contingent Resources

Contingent resources are “those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered to be commercially recoverable owing to one or more contingencies.” [NOTE: If deterministic, incremental quantities are presented, use the following wording; Otherwise, select one of the other “Alternatives” shown below.] [The contingent resources included herein were estimated using deterministic methods and presented as incremental quantities. In accordance with SPE-PRMS, the range of uncertainty for discrete incremental quantities of contingent resources is denoted in the categories C1, C2 and C3. Contingent resources categorized as C2 are those additional contingent resources beyond the contingent resources categorized as C1 and are less likely to be recovered than C1 contingent resources. Contingent resources categorized as C3 are those additional contingent resources that are less likely to be recovered than C1 and C2 contingent resources.]

[Alternatively: The contingent resources included herein were estimated using deterministic methods and presented as cumulative quantities. For contingent resources estimated using the deterministic cumulative approach, quantities of contingent resources are estimated and assigned as 1C, 2C or 3C based on the level of uncertainty for the cumulative volume. Under the deterministic cumulative approach, 1C denotes the low estimate, 2C denotes the best estimate and 3C denotes the high estimate. It follows that aggregating different categories of discrete incremental contingent resources to represent cumulative quantities such as 2C (C1 plus C2) and 3C (2C plus C3) denotes greater uncertainty with each successive aggregation.

[Alternatively: The contingent resources included herein were estimated using cumulative probabilistic methods which assess the uncertainty in the estimated quantities of contingent resources based on the probability that the quantities actually recovered will equal or exceed the estimate. Using probabilistic methods, there should be at least a 90% probability (P90) that the actual quantities recovered will equal or exceed the C1 incremental estimate or the cumulative 1C or low estimate. There should be at least a 50% probability (P50) that the actual quantities recovered will equal or exceed the C1 plus C2 incremental contingent resources or the cumulative 2C or best estimate and there should be at least a 10% probability (P10) that the actual quantities recovered will equal or exceed the estimate of the C1 plus C2 plus C3 incremental contingent resources or the cumulative 3C or high estimate.] [Note if both deterministic and probabilistic methods were used individually or in combination to estimate the contingent resources quantities included herein.]

 [The contingent resources volumes [and income quantities] attributable to the different resources categories that are included herein have not been adjusted to reflect these varying degrees of uncertainty associated with them and thus are not comparable. Petroleum quantities classified as contingent resources should not be aggregated with each other without due consideration of the appreciable differences in the criteria associated with their categorization.] [NOTE: Include the preceding two sentences only if “incremental contingent resources quantities” are presented. Also, include the following 5 sentences below.

If “cumulative contingent resources quantities” are presented, exclude the preceding two sentences, but include the following 5 sentences below.]

There may be a significant risk that accumulations containing contingent resources will not achieve commercial production. Moreover, estimates of resources may increase or decrease as a result of future operations, effects of regulation by governmental agencies or geopolitical risks. As a result, the estimates of oil and gas resources have an intrinsic uncertainty. The contingent resources included in this report are therefore estimates only and should not be construed as being exact quantities. They may or may not be actually recovered, and if recovered, [the revenues therefrom and the actual costs related thereto] could be more or less than the estimated amounts.

[Reserves and Resources Derived Through Certain Production Sharing Contracts

The reserves reported herein are limited to the period prior to expiration of current contracts providing the legal right to produce or a revenue interest in such production unless there is a reasonable expectation that an extension, a renewal or a new contract will be granted. A reasonable expectation is noted as representing a high degree of confidence that an extension, a renewal, or new contract will be granted. The contingent resources reported herein may be subject to a contract providing the legal right to produce or a revenue interest in such production, that is subject to negotiations. Recoverable hydrocarbon volumes are classified as contingent resources when such negotiations have yet to establish that there is a reasonable expectation that a new contract or contract renewal will be granted.

Furthermore, properties in the different countries may be subjected to substantially varying contractual fiscal terms that affect the net revenue to XXX for the production of these volumes. The prices and economic return received for these net volumes can vary materially based on the terms of these contracts. Therefore, when applicable, Ryder Scott reviewed the fiscal terms of such existing or proposed contracts and discussed with XXX the net economic benefit attributed to such operations for the determination of the net hydrocarbon volumes and income thereof. Ryder Scott has not conducted an exhaustive audit or verification of such contractual information. Neither our review of such contractual information nor our acceptance of XXX’s representations regarding such contractual information should be construed as a legal opinion on this matter.]

Possible Effects of Regulation

[Ryder Scott did not evaluate country and geopolitical risks in the countries where XXX operates or has interests.] XXX’s operations may be subject to various levels of governmental controls and regulations. These controls and regulations may include matters relating to land tenure and leasing [contract terms], the legal rights to produce hydrocarbons [including the granting, extension or termination of production sharing contracts, the fiscal terms of various production sharing contracts], drilling and production practices, environmental protection, marketing and pricing policies, royalties, various taxes and levies including income tax[, and foreign trade and investment] and are subject to change from time to time. Such changes in governmental regulations and policies may cause volumes of reserves and resources actually recovered and amounts of income actually received to differ significantly from the estimated quantities.

The estimates of reserves and contingent resources presented herein were based upon a detailed study of the properties in which XXX [owns] [Alternately Add or Substitute: [and] derives] an interest; however, we have not made any field examination of the properties. No consideration was given in this report to potential environmental liabilities that may exist nor were any costs included for potential liability to restore and clean up damages, if any, caused by past operating practices.

Methodology Employed for Estimates of Reserves and Resources

The estimation of reserves and resources quantities involves two distinct determinations. The first determination results in the estimation of the quantities of recoverable oil and gas and the second determination results in the estimation of the uncertainty associated with those estimated quantities. The process of estimating the quantities of recoverable oil and gas reserves and resources relies on the use of certain generally accepted analytical procedures. These analytical procedures fall into three broad categories or methods: (1) performance-based methods, (2) volumetric-based methods and (3) analogy. These methods may be used individually or in combination by the reserves evaluator in the process of estimating the quantities of reserves and/or resources. Reserves evaluators must select the method or combination of methods which in their professional judgment is most appropriate given the nature and amount of reliable geoscience and engineering data available at the time of the estimate, the established or anticipated performance characteristics of the reservoir being evaluated, and the stage of development or producing maturity of the property.

In many cases, the analysis of the available geoscience and engineering data and the subsequent interpretation of these data may indicate a range of possible outcomes in an estimate, irrespective of the method selected by the evaluator. When a range in the quantity of recoverable hydrocarbons is identified, the evaluator must determine the uncertainty associated with the incremental quantities of those recoverable hydrocarbons. [If the quantities are estimated using the deterministic incremental approach, the uncertainty for each discrete incremental quantity is addressed by the reserves or resources category assigned by the evaluator. Therefore, it is the categorization of incremental recoverable quantities that addresses the inherent uncertainty in the estimated quantities reported.] [Alternatively: If the quantities are estimated using the deterministic cumulative or probabilistic cumulative approach, the level of uncertainty is addressed for the cumulative volume based on the reserves or resources category assigned by the evaluator. Therefore, it is the categorization of the cumulative recoverable quantities that addresses the inherent uncertainty in the estimated quantities reported.]

Estimates of reserves and resources quantities and their associated categories or classifications may be revised in the future as additional geoscience or engineering data become available. Furthermore, estimates of the recoverable quantities and their associated categories or classifications may also be revised due to other factors such as changes in economic conditions, results of future operations, effects of regulation by governmental agencies or geopolitical or economic risks as previously noted herein.

The reserves and contingent resources for the properties included herein were estimated by performance methods, the volumetric method, analogy, or a combination of methods [list only those methods used in this report]. In general, the [proved, probable and possible] reserves [and contingent resources] attributable to producing wells and/or reservoirs were estimated by performance methods [or a combination of methods]. These performance methods include, but may not be limited to, decline curve analysis, material balance and/or reservoir simulation, [list only those methods used in this report] which utilized extrapolations of historical production and pressure data available through XXXX, 20XX in those cases where such data were considered to be definitive. The data used in these analyses were furnished to Ryder Scott by XXX or obtained from public data sources and were considered sufficient for the purpose thereof. In certain cases, [proved, probable and possible] producing reserves [and contingent resources] were estimated by the volumetric method, analogy, or a combination of methods [list only those methods used in this report]. These methods were [This method was] used where there were inadequate historical performance data to establish a definitive trend and where the use of production performance data as a basis for the estimates was considered to be inappropriate. [NOTE: Neither the SEC nor the SPE-PRMS require the percentages of each estimation methodology be indicated for each reserve category / producing status category. However, the estimation methodology actually used should be clearly stated for each of the categories and classifications. Revise the wording above FOR RESERVES AND RESOURCES as needed to make this disclosure.]

The reserves [and contingent resources] for the properties included herein attributable to the non-producing and the undeveloped status categories were estimated by the volumetric method, analogy, or a combination of methods [List only those methods used in this report. Distinguish clearly any different methods used for various categories / classifications.]. The volumetric analysis utilized pertinent well and seismic data, reports and other data furnished to Ryder Scott by XXX or which we have obtained from public data sources that were available through XXXX, 20XX. The data utilized from the [analogues in conjunction with] well and seismic data incorporated into our volumetric analysis were considered sufficient for the purpose thereof. [NOTE: Neither the SEC nor the SPE-PRMS require the percentages of each estimation methodology be indicated for each reserve category / producing status category. However, the estimation methodology actually used should be clearly stated for each of the categories and classifications. Revise the wording above FOR RESERVES AND RESOURCES as needed to make this disclosure.]

 [Amend the previous statements as necessary to address the reserves and contingent resources uncertainty categories represented in each development and producing status category noted above.]

[ADDITIONAL INSTRUCTIONS FOR INCLUSION IN THE ABOVE SECTION AS NECESSARY: Describe as necessary proved, probable and possible reserves volumes related to primary recovery, secondary recovery, enhanced recovery, coal bed methane, horizontal drilling, etc.]

Assumptions and Data Considered for Estimates of Reserves and Resources

To estimate recoverable oil and gas reserves and resources and related future net cash flows, we consider many factors and assumptions including, but not limited to, the use of reservoir parameters derived from geological, geophysical and engineering data which cannot be measured directly, economic criteria based on the cost and price assumptions as noted herein, and forecasts of future production rates. Under the SPE-PRMS Section 1.1.0.6, “reserves are those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions.” [Accordingly, we have applied the same criteria for commercially recoverable to [certain] contingent resources] included in this report, [i.e, Group 1] but which may lack a firm intention to proceed with the development.] [Note: Include this reference to contingent resources only if the evaluator did in fact apply the same criteria of “commercially recoverable” to the resources in this report, but which may lack a firm intention to proceed with the development. While “commercially recoverable” is not a requirement for resources, the evaluator should appropriately disclose the situation in this report. Suggested alternative wording is shown as follows; however, it should be modified appropriately.] If applicable state: It should be noted that certain contingent resources volumes have also been included (and reported separately) which are economically viable (i.e., expected to yield positive undiscounted cash flows), but which are not expected to meet commercial criteria (i.e., do not exceed XXX’s investment hurdle rate.) [i.e., Group 2] These volumes of contingent resources may require a change in current price and cost conditions in order to be commercial. [If applicable state: It should be noted that certain contingent resources volumes have been excluded [or reported separately herein], as these volumes were “not expected to yield positive undiscounted cash flows” using the same economic criteria applied to estimate the reserves in this report. [i.e., Group 3] These volumes of contingent resources may require a change in current price and cost conditions in order to be commercial.] [NOTE: Be sure to include any appropriate wording for this report that describes more fully what contingent resources are included or excluded from this report (e.g., contingent resources that go beyond the contract life, etc.]

XXX has informed us that they have furnished us all of the material accounts, records, geological and engineering data, and reports and other data required for this investigation. In preparing our forecasts of future production and income, we have relied upon data furnished by XXX with respect to property interests owned [or derived], production and well tests from examined wells, normal direct costs of operating the wells or leases [For international reports substitute “contract areas” for “leases” in letter where applicable], other costs such as transportation and/or processing fees, ad valorem [INFORMATIONAL NOTE: For international reports remove ad valorem taxes] and production taxes, [denote any other taxes relevant to this report,] recompletion and development costs, development plans, abandonment costs after salvage, product prices, geological structural and isochore maps, well logs, core analyses, and pressure measurements. [NOTE: Include only those items provided by the client.] Ryder Scott reviewed such factual data for its reasonableness; however, we have not conducted an independent verification of the data supplied by XXX.

In summary, we consider the assumptions, data, methods and analytical procedures used in this report appropriate for the purpose hereof, and we have used all such methods and procedures that we consider necessary and appropriate to prepare the estimates of reserves and contingent resources herein.

Future Production Rates

For wells currently on production, our forecasts of future production rates are based on historical performance data. If no production decline trend has been established, future production rates were held constant [, or adjusted for the effects of curtailment where appropriate,] until a decline in ability to produce was anticipated. An estimated rate of decline was then applied until depletion of the reserves [and/or contingent resources]. If a decline trend has been established, this trend was used as the basis for estimating future production rates.

[Test data and other related information were used to estimate the anticipated initial production rates for those [wells or locations] that are not currently producing. For reserves [and/or contingent resources not yet on production, sales were estimated to commence at an anticipated date furnished by XXX. [Wells or locations] that are not currently producing may start producing earlier or later than anticipated in our estimates due to unforeseen factors causing a change in the timing to initiate production. Such factors may include delays due to weather, the availability of rigs, the sequence of drilling, completing and/or recompleting wells and/or constraints set by regulatory bodies.]

The future production rates from wells currently on production [or wells or locations that are not currently producing] may be more or less than estimated because of changes including, but not limited to, reservoir performance, operating conditions related to surface facilities, compression and artificial lift, pipeline capacity and/or operating conditions, producing market demand and/or allowables or other constraints set by regulatory bodies.

Hydrocarbon Prices

XXX furnished us with current product prices and these prices were held constant for the life of each property, unless prices were defined by contractual arrangements. [Alternatively: The XXXX XX, 20XX initial prices of $X.XX per MMBTU for gas, $XX.XX per barrel for natural gas liquids (NGLs), and $XX.XX per barrel for condensate and oil were specified by XXX. These prices were held constant for the life of each property, unless prices were defined by contractual arrangements.] For hydrocarbon products sold under contract, the contract prices including fixed and determinable escalations, exclusive of inflation adjustments, were used until expiration of the contract. Upon contract expiration, the prices were adjusted to the current product prices as of XXXX XX, 20XX. An averaging period of XX months was used in determining current product prices. [Note: The SPE-PRMS defines current conditions as the average of those existing during the previous 12 months. If a period other than 12 months is used, this should be noted and accompanied by a brief explanation. Conversely, the SPE-PRMS allows for the use of forward looking price assumptions. If the report utilizes current unescalated costs, but incorporates forward looking price assumptions, the basis for the prices used herein should be explained in this section of the letter.]

Product prices that were actually used for each property reflect adjustments to the “benchmark or reference prices” described above for gravity, quality, local conditions, [gathering and transportation fees] [Note: Include this reference if gathering and transportation fees are incorporated as an adjustment to the initial hydrocarbon price; otherwise reference should be made to gathering and transportation as an expense or deduction in the section of the report under costs.] and/or distance from market, referred to herein as “differentials.” The differentials used in the preparation of this report were furnished to us by XXX. [If appropriate to this report state: The differentials furnished to us were accepted as factual data and reviewed by us for their reasonableness; however, we have not conducted an independent verification of the data used by XXX to determine these differentials.] [Alternatively and if appropriate to this report state: The differentials furnished by XXX were reviewed by us for their reasonableness using information furnished by XXX for this purpose. Or if appropriate to this report state: The differentials used in the preparation of this report were estimated by us based on information furnished by XXX.]

The effects of derivative instruments designated as price hedges of oil and gas quantities are not reflected in our estimated individual property evaluations. [Specifically list any exceptions to the general hedge treatment. For example there may be certain cases where a hedge is related to production from a specific property, and the client informs us that it is appropriate to account for the hedge effect directly in the future prices for that property.]

While it may reasonably be anticipated that the future prices received for the sale of production and the operating costs and other costs relating to such production may also increase or decrease from existing levels, such changes were omitted from consideration in making this evaluation.

Costs

Operating costs for the leases [contract areas] and wells in this report [were furnished by XXX and] are based on the operating expense reports of XXX and include only those costs directly applicable to the leases [contract areas] or wells. The operating costs include a portion of general and administrative costs allocated directly to the leases [contract areas] and wells. [When applicable state: For operated properties, the operating costs include an appropriate level of corporate general administrative and overhead costs. The operating costs for non-operated properties include the COPAS overhead costs that are allocated directly to the leases [contract areas] and wells under terms of operating agreements.] [Provide appropriate description of other costs such as transportation and/or processing fees, if included as deductions or included in operating costs.] [If appropriate to this report state: The operating costs furnished to us were accepted as factual data and reviewed by us for their reasonableness; however, we have not conducted an independent verification of the operating cost data used by XXX.] [Alternatively and if appropriate to this report state: The operating costs furnished by XXX were reviewed by us for their reasonableness using information furnished by XXX for this purpose. Or if appropriate to this report state: The operating costs used in the preparation of this report were estimated by us based on information furnished by XXX.] No deduction was made for loan repayments, interest expenses, or exploration and development prepayments that were not charged directly to the leases [contract areas] or wells.

Development costs were furnished to us by XXX and are based on authorizations for expenditure for the proposed work or actual costs for similar projects. [If appropriate to this report state: The development costs furnished to us were accepted as factual data and reviewed by us for their reasonableness; however, we have not conducted an independent verification of these costs.] [Alternatively and if appropriate to this report state: The development costs furnished by XXX were reviewed by us for their reasonableness using information furnished by XXX for this purpose.] The estimated net cost of abandonment after salvage was included for properties where abandonment costs net of salvage were material. The estimates of the net abandonment costs furnished by XXX were accepted without independent verification. [Alternative: XXX’s estimates of zero abandonment costs after salvage value for onshore properties were used in this report. Ryder Scott has not performed a detailed study of the abandonment costs or the salvage value and makes no warranty for XXX’s estimates.]

Because of the direct relationship between volumes of undeveloped reserves and development plans, we include in the undeveloped reserves category only those volumes assigned to undeveloped locations that we have been assured will definitely be drilled [and reserves assigned to the undeveloped portions of secondary or tertiary projects which we have been assured will definitely be developed.] In accordance with SPE-PRMS guidelines, “a reasonable time frame for the initiation of development depends on the specific circumstances and varies according to the scope of the project.  While 5 years is recommended as a benchmark, a longer time frame could be applied where, for example, development of an economic project is deferred at the option of the producer for, among other things, market-related reasons, or to meet contractual or strategic objectives.”   XXX has assured us of their intent, commitment, and ability to proceed with the development activities included in this report and that they are not aware of any legal, regulatory, or political obstacles that would significantly alter their plans. NOTE:  If a material volume of undeveloped reserves (proved, probable, or possible) is forecast to have drilling initiated beyond “a reasonable time frame”, the following statement should be included AND written assurance from the client is to be included in your documentation.]   [Furthermore, XXX has also assured us that for the evaluated properties, any development initiated beyond “a reasonable time frame” is in accordance with the above-mentioned guidelines.]

Current costs used by XXX were held constant throughout the life of the properties.

Standards of Independence and Professional Qualification

Ryder Scott is an independent petroleum engineering consulting firm that has been providing petroleum consulting services throughout the world since 1937. Ryder Scott is employee-owned and maintains offices in Houston, Texas; Denver, Colorado; and Calgary, Alberta, Canada. We have approximately eighty engineers and geoscientists on our permanent staff. By virtue of the size of our firm and the large number of clients for which we provide services, no single client or job represents a material portion of our annual revenue. We do not serve as officers or directors of any privately-owned or publicly-traded oil and gas company and are separate and independent from the operating and investment decision-making process of our clients. This allows us to bring the highest level of independence and objectivity to each engagement for our services.

Ryder Scott actively participates in industry related professional societies and organizes an annual public forum focused on the subject of reserves evaluations and SEC regulations. Many of our staff have authored or co-authored technical papers on the subject of reserves related topics. We encourage our staff to maintain and enhance their professional skills by actively participating in ongoing continuing education.

Prior to becoming an officer of the Company, Ryder Scott requires that staff engineers and geoscientists receive professional accreditation in the form of a registered or certified professional engineer’s license or a registered or certified professional geoscientist’s license, or the equivalent thereof, from an appropriate governmental authority or a recognized self-regulating professional organization. Regulating agencies require that, in order to maintain active status, a certain amount of continuing education hours be completed annually, including an hour of ethics training. Ryder Scott fully supports this technical and ethics training with our internal requirement mentioned above.

We are independent petroleum engineers with respect to XXX. Neither we nor any of our employees have any financial interest in the subject properties and neither the employment to do this work nor the compensation is contingent on our estimates of reserves and resources for the properties which were reviewed.

The results of this study, presented herein, are based on technical analyses conducted by teams of geoscientists and engineers from Ryder Scott. The professional qualifications of the undersigned, the technical person(s) primarily responsible for overseeing[, reviewing and approving-if submitting qualifications of only the senior co-signer] the evaluation of the reserves and contingent resources information discussed in this report, are included as an attachment to this letter.

Terms of Usage

This report was prepared for the exclusive use and sole benefit of XXX Company and may not be put to other use without our prior written consent for such use. The data and work papers used in the preparation of this report are available for examination by authorized parties in our offices. Please contact us if we can be of further service.

  Very truly yours,

  RYDER SCOTT COMPANY, L.P.

  TBPELS Firm Registration No. F-1580

  XXXXXXXXXXXXX, P.E.

  TBPELS License No. XXXX

  Title

/pl